Not yet registered? Create a OverBlog!

Create my blog

How to get the best personal loan rates

Personal loans are an important financial tool for people who need money now, but want to pay the money back over time. Personal loans are often used to pay for bills, send kids to private school or college, to upgrade a home or buy furniture. If you need a personal loan, there are steps that you can take to ensure that you get a low rate loan.

Check your credit score

The biggest factor that lenders will consider when determining your personal loan rate is your credit score. You need to check this before you apply for any loans to make sure that it is at a decent level. If not, also check your credit report to see if you can spot what is holding your score down. You may want to hold off on applying for the loan until you have a chance to correct any negative factors, to avoid getting locked into a high rate. The higher your credit score is at the time your make the application for a persona loan, the better are your chances for a low APR loan.

Shop around

Some lenders charge higher rates for personal loans than other lenders do. If you are a member of a credit union, this is the best place to start your search. Credit unions often have lower rates and fees for their services than other banks because they are member-owned. You still must qualify under certain criteria, but those who do qualify can find lower rates. If you can’t apply at a credit union, your first step should be searching the Internet for loan quotes to compare current rates from different lenders. Once you have targeted a few banks that you would like to try, you can begin making your applications.

Wait for lower market rates

When market interest rates are lower, loan rates will be lower. The biggest problem with this is that rates may not go down for years and you may need money now. However, if you see that rates are steadily declining and you have time to spare, then you may want to wait for them to “bottom out” before you apply for your loan. This will give you a lower rate than you otherwise would have received from the same lender with the same credit score.

Same category articles Banking

How to apply for a PLUS loan

How to apply for a PLUS loan

Going to college is not only expensive for college students, it can also become expensive for parents. College loans are usually in the student’s name, but many parents are starting to help prevent their child from having many loans in their name by applying for parent PLUS loans.
Disney credit cards: The facts

Disney credit cards: The facts

Disney credit cards were backed by the financial company Chase, as of July 2011. There is actually only one Disney credit card, which is the Disney Visa rewards card. This card gives card holders special rewards and other benefits for being a customer of a Disney-branded credit card. The article below details out useful information about Disney credit cards.
Faxless payday loans: The facts

Faxless payday loans: The facts

Learn why you need to be more careful in selecting your lender and how you can do so. Even more importantly, do you really need a cash loan today? Is there another alternative that will help you better than an online loan application now? Discover all the answers right here from this quick article.
Where to get wedding loans in the UK

Where to get wedding loans in the UK

Do you have poor credit and are you planning to marry that someone special? Is it becoming difficult for you to find finance for your wedding? Read this article for more information on where to find financial assistance for your big day. Make the beginning of your married life a pleasant experience by assisting you in getting wedding loans. If you want some money to finance your special day, then a wedding loan is an absolutely feasible option for you.